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New research reveals the most sought-after locations for holidaymakers across the UK. Below, we run through where you should focus your holiday let investments to get the best returns.

Despite the onslaught of legislation changes to the short-term letting sector, many holiday let investors will weather the storm and continue to reap the rewards of this booming market. Now more than ever, it’s important to make better-informed decisions when it comes to where you invest in holiday lets to boost your rental income.

A new study by Schofields Insurance reveals the most lucrative locations for holiday let investment that should help you when you’re planning your next investment. The report considers crime rates, potential rental yields, and nearby tourist attractions, combined with a survey of over 1,000 UK adults to identify these hotspots. You might even find a hidden gem set away from the most popular areas, meaning less competition!


The Southwest

In perhaps the most popular UK staycation area, three hotspots ranked high on the list of where to invest next. If you’re looking to invest in the Southwest, the areas to focus on are:

  • St Agnes, Cornwall
  • Harford, Devon
  • Corfe Mullen, Dorset

These areas boast many tourist destinations, including popular beaches, national parks, and nature reserves, attracting a high level of demand throughout the year, especially in the busy holiday seasons.


The Northwest

Holiday lets in the Northwest are often popular amongst keen walkers, but there are plenty of areas to explore other than the busier destinations such as Windermere. The new report reveals the hotspots to watch are:

  • Middlewich, Cheshire
  • Brereton, Cheshire
  • Eskdale, Cumbria
  • Aughton, Lancashire

Most notably, Brereton in Cheshire offers fantastic returns on holiday let cottages, with potential yields of 5.27%, the second highest in England.


The East Midlands

With the Peak District, Cambridgeshire, and other rural locations to explore, the East Midlands could be a great new property investment spot for your next holiday let. Key hotspots here include:

  • Stotfold, Bedfordshire
  • Knapwell, Cambridgeshire
  • Monyash, Derbyshire


The Northeast

The Northeast may not be at the top of everyone’s list for those planning their next holiday; however, there are a number of idyllic locations and popular attractions that draw many tourists to the area. With the lowest average property prices in England, holiday lets in this area, when marketed and managed properly, can generate significant returns. Two areas to focus on, according to the latest report, are:

  • Staindrop, Durham
  • Beadnell, Northumberland


Yorkshire and the Humber

The region with the most hotspots to focus your holiday let property investments on was Yorkshire and the Humber. With low crime rates, walking locations, National Trust properties and more, there’s plenty here to attract holidaymakers. As with other locations, it’s essential to maintain your property to a high standard to boost rental profits:

  • Stamford Bridge, East Riding
  • Harome, North Yorkshire
  • Spennithorne, North Yorkshire
  • Woodsetts, South Yorkshire
  • Addingham, West Yorkshire


The Southeast

The Southeast and the capital tend to rank highest when it comes to average property prices. However, yields in this region can be generous due to the high demand for short-term accommodation. As well as countryside retreats, the transport links into London mean that a wide range of holidaymakers look for holiday accommodation in this area. Some of the top locations to consider include:

  • Chaddleworth, Berkshire
  • Brockham, Surrey
  • Hughenden, Buckinghamshire
  • Ightham, Kent


The West Midlands

In the West Midlands, dog-friendly holiday lets are particularly popular, with plenty of outdoor activities across the region. With its proximity to Wales, national forests, castles, and areas of natural beauty, there’s a significant opportunity to run a successful holiday let investment from this region. The hotspots here include:

  • Craswell, Herefordshire
  • Upton Magna, Shropshire
  • Thorpe Constantine, Staffordshire
  • Charlecote, Warwickshire


The East of England

Home to historical sites and nature trails, the East of England has plenty of areas perfect for family holidays. Some areas that offer plenty of opportunities for your next holiday let investment are:

  • Tattingstone, Suffolk
  • St Ippolyts, Hertfordshire
  • Heacham, Norfolk


My holiday let investments

Whether you’re looking to expand your current holiday let property portfolio or looking to make your first investment, our mortgage experts are here to help. We can review your mortgage options to see where you can maximise your investments and help you plan your next property investment. Get in touch with our team on 0345 345 6788 or submit an enquiry here.

To learn more about holiday lets, visit our dedicated page here.

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